Huawei has been accused of offering to sell equipment to the Iranian authorities that would be illegal under US sanctions against the country.

Huawei is claimed to have offered around EUE1.3 million worth of
Hewlett-Packard computer equipment to the Iranian state-owned mobile network,
MCI -- although the sale was never completed.

The revelation will raise further problems for the company in the USA, where
it was recently subject to a political review which recommended that US firms
avoid dealing with it.

At least 13 pages of the proposal to MCI, which involved expanding its
subscriber billing system, were marked "Huawei confidential" and
carried the company's logo, according to documents seen by Reuters.

Huawei said that it was just a bidding document, and had been supplied by a
Hong-Kong based partner that operates in Iran.

HP says that its internal controls ensure that it does not break US embargos
against Iran.

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